2016 Global Fraud Study Issued

June 29, 2016

The Association of Certified Fraud Examiners (ACFE) latest Report to the Nations on Occupational Fraud and Abuse has just been released. The following are some of the report’s key findings:

  • The typical organization loses 5% of its revenues in a given year as a result of fraud.
  • The median loss for all cases was $150,000.
  • Asset misappropriation was by far the most common form of occupational fraud.
  • Billing schemes and check tampering posed the greatest risk.
  • The median duration of fraud was 18 months.
  • Organizations that had reporting hotlines were much more likely to detect fraud through tips than organizations without hotlines (45.3% compared to 28.2%, respectively)
  • The presence of anti-fraud controls was correlated with both lower fraud losses and quicker detection.
  • The most prominent organizational weakness that contributed to the frauds in our study was a lack of internal controls.
  • The perpetrator’s level of authority was strongly correlated with the size of the fraud.
 

 


This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.


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